From securing the ideal piece of real estate to hiring a qualified sales staff, opening and operating a physical store is a costly endeavor for retailers. So which are getting the most bang for their buck? A recent report by Jefferies analyst Randal Konik figured out just that. Based on his coverage universe, which includes specialty stores and off-price retailers, Konik analyzed companies' returns on investment as it relates to what they earn in sales per square foot, compared to what they pay in rent per square foot.
Randal Konik
(Reuters) - Women's apparel retailer Body Central Corp BODY.O cut its second-quarter outlook following heavy discounting to clear out inventory, sparking a selloff that wiped out half its market value for the second time in as many months.The mall-based retailer, which sells clothes, shoes and accessories to women in their late teens and 20s, has been struggling to drive sales for the past two quarters due to lackluster merchandise, losing ground to rivals such as Forever 21.Jefferies analyst Randal Konik said there was a "severe lack of visibility around the product issue," cutting his rating on the stock to
Talbots has seen little success in its bid to shed a stodgy image and attract a younger clientele. Now it's back to focusing on its core customers and the move seems to be paying off.
Talbots said it returned to profitability in the second quarter, but sales fell because the company kept the line on prices to a large degree. While the recession has made it common to deeply discount, "We did not react to what became a very aggressive promotional environment," Chief Executive Trudy Sullivan said. Instead, Talbots went after margin growth — or getting the most return on the dollars it did take in — and continued to balance cost cutting with rebuilding efforts.
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